1. (1)

   1. (a) On and after January 1, 2026, every seller shall collect, on behalf of the enterprise, the prepaid telephone disability access charge from the consumer on each retail transaction occurring in the state. The amount of the prepaid telephone disability access charge shall be disclosed to the consumer on an invoice, a receipt, or other similar document that the seller provides to the consumer. A seller shall elect to either disclose or separately state the charge and not change the election without the written consent of the department. The seller is deemed to have collected the charge notwithstanding the seller's failure to separately disclose or state the charge on an invoice, a receipt, or other similar document that the seller provides the consumer.

   2. (b) For purposes of this section, a retail transaction occurs in Colorado if:

      1. (I) The consumer effects the retail transaction in person at a business location in Colorado;
      2. (II) If subsection (1)(b)(I) of this section does not apply, the product is delivered to the consumer at a Colorado address provided to the seller;
      3. (III) If subsections (1)(b)(I) and (1)(b)(II) of this section do not apply, the seller's records, maintained in the ordinary course of business, indicate that the consumer's address is in Colorado, and the records are not made or kept in bad faith;
      4. (IV) If subsections (1)(b)(I) to (1)(b)(III) of this section do not apply, the consumer gives a Colorado address during the consummation of the sale, including the consumer's payment instrument if no other address is available, and there is no indication that the address is given in bad faith; or
      5. (V) If subsections (1)(b)(I) to (1)(b)(IV) of this section do not apply, the consumer's mobile telephone number is associated with a Colorado location.
   3. (c) The prepaid telephone disability access charge is the liability of the consumer and not of the seller; except that the seller is liable to remit all charges that the seller collects from a consumer as provided in subsection (2) of this section.
   4. (d) The amount of the prepaid telephone disability access charge that is collected by a seller from a consumer is not included in the base for measuring any tax, fee, surcharge, or other charge that is imposed by the state, any political subdivision of the state, or any intergovernmental agency.

2. (2)

   1. (a) The seller shall remit any collected prepaid telephone disability access charges to the department at the times and in the manner provided in part 1 of article 26 of title 39. The department shall establish, by rule, registration and payment procedures that substantially coincide with the registration and payment procedures that apply under part 1 of article 26 of title 39. A seller is subject to the penalties and interest under part 1 of article 26 of title 39 for failure to collect or remit a charge in accordance with this section.
   2. (b) A seller may deduct and retain three and three-tenths percent of the prepaid telephone disability access charges that are collected by a seller from consumers.
   3. (c) The executive director of the department shall collect, administer, and enforce the prepaid telephone disability access charge pursuant to article 21 of title 39. The audit and appeal procedures applicable to the state sales tax pursuant to part 1 of article 26 of title 39 apply to prepaid telephone disability access charges.
   4. (d) The department shall, by rule, establish procedures by which a seller may document that a transaction is not a retail transaction, which procedures must substantially coincide with the procedures for documenting that a sale was wholesale for purposes of the sales tax pursuant to part 1 of article 26 of title 39.

   5. (e)

      1. (I) The state treasurer shall credit the prepaid telephone disability access charges remitted to the department pursuant to subsection (2)(a) of this section to the Colorado division for the deaf, hard of hearing, and deafblind cash fund created in section 26-21-107 (1).
      2. (II) The department may retain up to three percent of the collected charges necessary to reimburse the department for its direct costs of administering the collection and remittance of prepaid telephone disability access charges. Money that the department retains pursuant to this subsection (2)(e)(II) shall be credited to the prepaid telephone disability access charge cash fund, which fund is created in the state treasury. The fund consists of money credited to the fund pursuant to this subsection (2)(e)(II) and any other money that the general assembly may appropriate or transfer to the fund. The state treasurer shall credit all interest and income derived from the deposit and investment of money in the prepaid telephone disability access charge cash fund to the fund.
3. (3) The prepaid telephone disability access charge is the only direct disability communication access funding obligation imposed with respect to prepaid wireless telecommunications service in the state. No tax, fee, surcharge, or other charge to fund disability communication access is imposed by the state, any political subdivision of the state, or any intergovernmental agency upon a seller or consumer with respect to the sale, purchase, use, or provision of prepaid wireless telecommunications service.
4. (4) The prepaid telephone disability access charge shall not be imposed on the seller or the consumer with respect to federally supported lifeline service.

Source: L. 2025: (7) added, (SB 25-264), ch. 129, p. 509, § 47, effective April 25; entire article R&RE, (HB 25-1154), ch. 230, p. 1081, § 15, effective May 22.

Editor's note: (1) Prior to its repeal and reenactment in 2025, this section was similar to former § 40-17-103 as it existed prior to 1992.

(2) Subsection (7), as added by SB 25-264, was relocated by HB 25-1154 to § 40-17-102 (7) in 2025.